Replication data for: The Contagion Effect of Neighboring Foreclosures
Principal Investigator(s): View help for Principal Investigator(s) Charles Towe; Chad Lawley
Version: View help for Version V1
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| data | 10/13/2019 07:33:AM | ||
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Project Citation:
Towe, Charles, and Lawley, Chad. Replication data for: The Contagion Effect of Neighboring Foreclosures. Nashville, TN: American Economic Association [publisher], 2013. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-13. https://doi.org/10.3886/E114823V1
Project Description
Summary:
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We examine the contagion effect of residential foreclosures and find
strong evidence of a social interactions influence on default decisions
where the interaction is based on neighbors’ behavior in a
previous period. Using a unique spatially explicit parcel-level dataset
documenting residential foreclosures in Maryland for the years
2006-2009 and a highly localized neighborhood definition, based on
13 nearest neighbors, we find that a neighbor in foreclosure increases
the hazard of additional defaults by 18 percent. This feedback effect
goes beyond a temporary reduction in local house prices and implies
a negative social multiplier effect of foreclosures. (JEL R23, R31)
Scope of Project
JEL Classification:
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R23 Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
R31 Housing Supply and Markets
R23 Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
R31 Housing Supply and Markets
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